Economics: Royalty Relief
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   Economics
 
Royalty Relief

The Outer Continental Shelf Lands Act (OCSLA) authorizes the Secretary of the Interior to grant royalty relief to promote increased oil and gas production (43 U.S.C. 1337). MMS offers royalty relief at certain times and to certain leases to promote development or increased production, or to encourage production of marginal resources on both producing and non-producing leases. The Deep Water Royalty Relief Act of 1995 (DWRRA) expanded the Secretary's royalty relief authority in the Gulf of Mexico (GOM) outer continental shelf, and the Energy Policy Act of 2005 expanded that authority offshore Alaska.

One of the responsibilities of the Economics Division is to design categorical royalty relief programs, and to assist with evaluations of case-by-case applications for royalty relief. Royalty relief programs are classified under the following general categories:
 

bullet GOM Deep Water Royalty Relief
bullet GOM Shallow Water Deep Gas Royalty Relief
bullet Alaska Royalty Relief
bullet End of Life Royalty Relief (under development)
bullet Special Case Royalty Relief (under development)
bullet Royalty Relief Application History (under development)

Last Updated: 03/31/2009, 11:28 AM Central Time